Local Indian rebar prices continued to extend major losses as induction furnace operators dropped prices further and distributors increased discounts to cope with worsening of stock movements and buyers are unwilling to restock amid sustained slowdown in user sectors, SteelOrbis learned from trade and industry circles on Tuesday, October 28.
Sources said that rebar trade price lost INR 1,000/mt ($11/mt) at INR 41,300/mt ($468/mt) ex-Mumbai and down INR 800/mt ($9/mt) at INR 42,700/mt ($484/mt) ex-Chennai in the south.
Rebar price was down INR 500/mt ($6/mt) at INR 37,500/mt ($425/mt) ex-Raipur and lost INR 400/mt ($5/mt) at INR 37,300/mt ($422/mt) ex-Durgapur in the east.
According to the sources, while secondary mills were dropping prices in reaction to inventory pressures, distributors were extending deeper discounts to cope with sharp slowdown on bookings and overall slowdown in retail sales depending on real estate development activities.
“There is all round despondency among producers and market intermediaries after the much awaited post-monsoon season revival in construction activities and hence demand for long products has been largely elusive. There is too much stock chasing too few buyers across key sectors,” a Kolkata based distributor said.
“At the production level, the market is still in a severe over supply position even after secondary mills have cut capacity utilization levels to 60-70 percent. Each user sector is resorting to only need-based buying. We do not see any positive driver ahead and prices are on a long term downtrend,” he added.
$1= INR 88.24